Investors in Sociedad Química y Minera de Chile S.A. (NYSE:SQM) had a good week, as its shares rose 9.7% to close at US$42.10 following the release of its full-year results. The statutory results were not great - while revenues of US$4.5b were in line with expectations,Sociedad Química y Minera de Chile lost US$1.42 a share in the process. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
See our latest analysis for Sociedad Química y Minera de Chile
After the latest results, the 14 analysts covering Sociedad Química y Minera de Chile are now predicting revenues of US$4.68b in 2025. If met, this would reflect a reasonable 3.4% improvement in revenue compared to the last 12 months. Sociedad Química y Minera de Chile is also expected to turn profitable, with statutory earnings of US$3.04 per share. Before this earnings report, the analysts had been forecasting revenues of US$4.95b and earnings per share (EPS) of US$3.53 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a real cut to earnings per share numbers.
Despite the cuts to forecast earnings, there was no real change to the US$52.71 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Sociedad Química y Minera de Chile, with the most bullish analyst valuing it at US$80.00 and the most bearish at US$36.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Sociedad Química y Minera de Chile's past performance and to peers in the same industry. We would highlight that Sociedad Química y Minera de Chile's revenue growth is expected to slow, with the forecast 3.4% annualised growth rate until the end of 2025 being well below the historical 27% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.3% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Sociedad Química y Minera de Chile.
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$52.71, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Sociedad Química y Minera de Chile going out to 2027, and you can see them free on our platform here..
Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Sociedad Química y Minera de Chile that you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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